Net income at Boston-based First Trade Union Bank surged 17.2 percent in fiscal 2008 compared to 2007, to $2.4 million from $2.04 million, thanks in part to growth in its loan portfolio and total deposits, the bank said in a statement.

Total loans grew 25.7 percent, or $90 million, to $443 million, primarily within the bank’s commercial & industrial portfolio. Total deposits increased 23.1 percent, or $80 million, to $427 million.  Deposit growth was concentrated in a 47 percent increase in interest-free (DDA) deposits, the bank said.

The bank’s move into a new corporate headquarters in Boston and an increase in salaries and benefits costs related to bringing on new employees helped push operating expenses to $10.9 million in 2008, a 21 percent increase over 2007.

"Through a very challenging and uncertain year we were able to not only achieve strong earnings growth, but also maintain our asset quality," First Trade Union Bank’s President & CEO, Michael Butler, said in a statement. "Despite turbulent economic conditions, First Trade is poised for growth and remains strongly committed to serving the needs of our clients."

First Trade Union Bank has more than $590 million in assets, and operates branches in Boston, Warwick, R.I., and Hauppauge, N.Y.